Federal Reserve governor Lisa Cook has sued President Donald Trump over his attempt to fire her, setting up a potential legal battle with implications for the US central bank's autonomy.
Cook has asked the court to declare Trump's firing order 'unlawful and void', and has also named Fed Chairman Jerome Powell as a defendant. The president has claimed there was 'sufficient reason' to believe Cook had made false statements on her mortgage, citing constitutional powers to remove her. Cook, however, has insisted that 'no cause exists under the law' for her dismissal.
Cook is part of the board responsible for setting interest rates in the US, and her lawsuit may bring various legal challenges potentially ending up at the US Supreme Court.
Abbe Lowell, Cook's attorney, argued that this case challenges a historic and unprecedented removal attempt, which if allowed, would set a dangerous precedent against the Federal Reserve Act.
On the other hand, White House spokesperson Kush Desai defended the president's authority to remove Cook, stating the president acted upon credible allegations regarding her integrity.
Allegations against Cook stemmed from claims of falsifying records to obtain a mortgage, but no legal charges have been filed against her. The outcome of this case remains a pivotal moment that could influence monetary policy and the independence of central banking in the US.
Cook has asked the court to declare Trump's firing order 'unlawful and void', and has also named Fed Chairman Jerome Powell as a defendant. The president has claimed there was 'sufficient reason' to believe Cook had made false statements on her mortgage, citing constitutional powers to remove her. Cook, however, has insisted that 'no cause exists under the law' for her dismissal.
Cook is part of the board responsible for setting interest rates in the US, and her lawsuit may bring various legal challenges potentially ending up at the US Supreme Court.
Abbe Lowell, Cook's attorney, argued that this case challenges a historic and unprecedented removal attempt, which if allowed, would set a dangerous precedent against the Federal Reserve Act.
On the other hand, White House spokesperson Kush Desai defended the president's authority to remove Cook, stating the president acted upon credible allegations regarding her integrity.
Allegations against Cook stemmed from claims of falsifying records to obtain a mortgage, but no legal charges have been filed against her. The outcome of this case remains a pivotal moment that could influence monetary policy and the independence of central banking in the US.
